Big Debts

AndyCash

Hi

I am 32 and am in debt to the tune of £49k. When I think about that amount it makes me feel quite sick and I have tended to do what a lot of people do I guess and just carry on and on burying my head in the sand hoping that it will all go away. I have finally got the courage to contact the CCCS and have a telephone appointment booked for this coming Tuesday. I am just worried about explaining it all over the phone to someone as I must sound so stupid.
Do you think I will have to go bankrupt? If I did, could I continue to rent a flat or would my landlord throw me out?
I am really worried and any advice anyone could give would be gratefully accepted.

Andy

svmitche

Hi Andy,

First of all, welcome to the site ;D

I'll agree that your numbers sound very frightening at the moment and although it's very easy for me to say, PLEASE don't fret too much until you have spoken to your CCCS rep.

Although we're talking some serious money, you've taken the initiative and gone to a professional organisation who will be able to help you, so in the first instance, well done for taking this courageous step!

Second of all, congratulations on finding this site!! You've certainly come to the right place. Once the CCCS have an idea of what they can do for you, this site (and the forum) can offer you a lot of information on how to further save yourself some money on the essentials in life like utilities etc.

Just remember, when you are speaking to the CCCS, they hear stories like yours everyday and also ones a lot worse. If your rep is judgemental then he/she is not doing the job properly. Please don't worry about explaining it all, as that's the only way they will be able to help you, and they (and we) do want to help you.

Many of the members on the site have been in similar situations to you, so gird up you courage and let us know how you get on!!

EMcG

Hello there,

another great site is The Motley Fool -

https://www.fool.co.uk

they have a fantastic section in their message forum called 'Dealing With Debt' that offers advice, ideas and a should to lean on when things are getting tough.

There are lots of people there who are going or have been through what you're experiencing at the moment. Give it a try. Well worth checking out.

Plus they recommend Martin's book so they know what they're talking about.

AndyCash

OK, I had my interview and for anyone who's interested here are the details -

I am £50,884 in debt and have a monthly net salary of £1,600. With the new budget I discussed with the rep (£35 pw for groceries!) there is £630 left to pay to my creditors. This leaves me with 2 options in his opinion, either a DMP or IVA. IVA sounds expensive and might not be accepted by some of my creditors (especially Lombard apparently) so I have opted for DMP, which is going to come into affect on 1st October. I am 32 at the moment so by the time this is all paid off I will be getting near to 40 I imagine! I just wish I hadnt been so silly with credit and accepted everything I was offered! If I could give a person who has just started working some advice it would be to never get more than one credit card, because it is just so easy to get into trouble. To think of the things I could have now if I wasnt in debt makes me want to cry.

Anyway, hopefully a change in lifestyle will do me good and maybe one day I will be debt free and happy..

Freddie_Snowbits

I am sorry, but with a salary in the region of £28000 pa, how have you managed to run up such high debts. My salary of £21,000 pa and I struggle to get to £1,000.

Oh, and I have a mortgage as well, you may wish to view my previous replys if you wish.

Now, if your only outcome is £35 per week for groceries, you should have £1,400 per month to service your debt.

Or is there something you are just not telling us?

Edinburghlass_2

Glad that one step is over for you Andy and you can see a way ahead.

You will find loads of help on the boards about shopping on a budget. If you follow Martin's advice remember to look out for supermarket's own brands. I use Tesco and their value range is excellant. For instance I treat myself occasionally to a box of double yolk eggs but use the value eggs for everything else.

Good luck

AndyCash

Freddie_snowbits

The debts have been growing and growing for the last 12 years, I guess I just have very little self discipline as I would take out a loan to pay off credit cards, and then run up debts again on the cards, so ending up twice as worse off. The £35 pw is my new budget according to CCCS, that is what a single person should be able to live on and is the max that creditors will accept apparently. Obviously I haven't been spending that sort of money up to now, otherwise I wouldnt be in such a bad situation. When I was 17 I left school and went to work in Tesco, earning about £400 a month. At that time everything was good and I would be able to save about £200 each month. Then when i was about 19/20 one of my friends and me went and applied for a barclaycard, they gave me a visa with a £1250 limit and a mastercard with a £500 limit. This was money like I had never seen before and unfortunately I was soon up to my limit on both cards! It has all spiralled from there really.

Thanks to the other replies for their support.

trafalgar_2

Freddie_snowbits

The debts have been growing and growing for the last 12 years, I guess I just have very little self discipline as I would take out a loan to pay off credit cards, and then run up debts again on the cards, so ending up twice as worse off.  The £35 pw is my new budget according to CCCS, that is what a single person should be able to live on and is the max that creditors will accept apparently.  Obviously I haven't been spending that sort of money up to now, otherwise I wouldnt be in such a bad situation.  When I was 17 I left school and went to work in Tesco, earning about £400 a month.  At that time everything was good and I would be able to save about £200 each month.  Then when i was about 19/20 one of my friends and me went and applied for a barclaycard, they gave me a visa with a £1250 limit and a mastercard with a £500 limit.  This was money like I had never seen before and unfortunately I was soon up to my limit on both cards!  It has all spiralled from there really.

Thanks to the other replies for their support.

Good on you for getting to grips with it now

Lots of people have got in your position , the main thing is your dealing with it .....and once it's clear ...........since you recognise how you got there.....................you will stay clear ;D

Good luck to ya

AndyCash

Thanks Trafalgar

ms_london

Ignore freddie, this board doesnt really need people like him!!!

We are all here to help!! ;D

Just ask if you need to know anything else, but keep at it - your debt will go away. Try and get it paid off as soon as you can though, its better to struggle for a few years than to hanging over your head forever!!!

xx

j

Andy
I am new to this but was drawn to you by your name as I have just been presneted with news from my nephew who is also an Adny that he has huge debts. I am at my wits end as he wass uicidal as was telling me - by phone as I live in Spain - so i am on the net trying to find a solutin. I ma flying home next week and havearranged a meeting with his bank in the firts instance. Are you doing Ok? I am going to read you letters and replies now so hope you are OK and that my Andy will be too.
J.